Cheap Homeowners Insurance Coverage: What You Need to Know
Buying a home is an important milestone for many Americans, and home insurance can help protect it. With the rising cost of virtually everything, finding cheap homeowners insurance is more important than ever. From discounts to the most affordable companies, you can learn how to get the cheapest homeowners insurance with this guide.
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UPDATED: Mar 20, 2022
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- Some of the cheapest homeowners insurance companies are USAA, Amica, Nationwide, Progressive, and Liberty Mutual
- You can save money on home insurance by taking advantage of discounts, buying only the coverage you need, and improving the security features of your home
- The best way to make sure you get the best price on your insurance as possible is to compare quotes with as many features as possible
Owning a home is the traditional American dream, but buying a house is increasingly difficult. From the prices of homes skyrocketing to inflation everywhere else, most homeowners could benefit from anything that saves them money.
Unlike car insurance, homeowners coverage is not legally required to own a home. However, homeowners insurance should be a priority because it protects your home from the most common damaging events.
Unfortunately, homeowners insurance can be expensive, especially when you get all the bells and whistles. You deserve the protection homeowners insurance brings, no matter how tight your budget is.
Read on to learn more about cheap homeowners insurance, then compare prices with as many companies as possible to find the best rates for you.
What are the cheapest homeowners insurance companies?
Finding the cheapest home insurance companies might seem complicated, but you can browse some of the most affordable providers below. However, you should understand the factors that determine the price of your insurance.
While there are numerous factors an insurance company will consider, you can read about the most important below:
- Location. Perhaps the most crucial aspect of your insurance price, your location indicates how likely you are to file a claim. Areas frequently hit by natural disasters or high crime rates will pay more.
- Age and condition. Older homes generally cost more to repair because of their building materials. Additionally, older homes might have outdated electrical or plumbing systems.
- Value of home and repair costs. The more expensive your home is, the more it will cost to repair, especially if you have custom features like fireplaces.
- Coverage options. Your costs will rise with every extra feature you add to your policy. You’ll pay more if you choose lower deductibles, as well.
- Security features. Insurance companies generally lower the price of insurance for things that reduce your chances of filing a claim. Safety or security features like fire or burglar alarms usually save you money.
- Credit score. Your credit score represents your ability to pay your bills. You can lower your insurance cost by raising your credit score.
There are other factors that companies consider, and every provider will weigh these attributes differently. These are the primary factors that insurance companies will consider, though.
Now that you understand what they look for, read on to learn about the cheapest insurance companies. Only companies that offer coverage in the majority of states are listed below, but you might be able to find more affordable local coverage. For example, Erie Insurance has some of the lowest rates in the country, but it only offers coverage in 12 states.
USAA Home Insurance
USAA is frequently recognized for its exceptional service in all of its coverage options, including its auto insurance and banking services. The only downside to USAA is that you must be active or retired military or their family to qualify for coverage.
Even with the military requirement, USAA home insurance is worth mentioning. With an average monthly price of $85, it’s one of the cheapest insurance providers on the market.
USAA has a reputation for excellent customer service and reliability. With an A.M. Best rating of A++ (the highest available), you don’t have to worry about your claim going unpaid.
Liberty Mutual Homeowners Insurance
Liberty Mutual is available in every state except Wyoming and generally has cheap rates. The average cost of Liberty Mutual homeowners insurance is $112 a month. Customers can lower their prices with Liberty Mutual’s generous discount availability.
While Liberty Mutual offers cheap rates, dog owners should be cautious. Certain dog breeds will raise your rates, and Liberty Mutual might deny you coverage altogether.
A.M. Best gives Liberty Mutual a respectable A rating, though this is one of the lowest ratings on this list. However, customers appreciate that Liberty Mutual has a long list of additional coverage options and discounts.
Amica Homeowners Insurance
Amica might not be the largest company in America, but it offers coverage in all states except Hawaii and Arkansas. With an average monthly rate of $123, Amica is one of the most affordable companies out there.
Amica’s list of additional coverage options isn’t as long as some of its competitors, but it does offer valuable discounts. One of the most unique is Amica’s automatic detection discount, which rewards you for installing a monitoring system on your gas or water systems.
A.M. Best rates Amica’s financial security highly, giving the company an A+. Amica generally receives positive reviews from customers who enjoy the company’s online tools.
Progressive Home Insurance
While it’s more known for its car insurance, Progressive claims the 10th largest share of the home insurance market. With an average price of $90 a month, Progressive offers quite the deal.
Progressive is an excellent choice if you want to manage your home insurance digitally. With an easy-to-use website and mobile app, you rarely need to speak with an agent.
On the other hand, there are numerous customer complaints with Progressive’s home insurance. And while they offer a lot of discounts, optional coverage choices are limited. However, they get a solid A+ rating from A.M. Best.
Nationwide Homeowners Insurance
Finally, Nationwide offers an average price of $126, but it doesn’t quite live up to its name. Nationwide is available in nearly all states — but if you live in Massachusetts, Alaska, New Jersey, or Louisiana, you’ll need to find insurance elsewhere.
Nationwide offers numerous products for its customers to take advantage of outside of insurance, such as retirement plans and banking services. They also have a lot of discounts to help you save money. If you need cheap homeowners insurance with bad credit, Nationwide might be your best choice.
However, Nationwide has a below-average customer satisfaction for its homeowners insurance. It also lacks many of the online options that other companies have. It has good financial strength, however — A.M. Best gives Nationwide an A+.
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How can you save money on homeowners insurance?
Knowing the cheapest insurance companies is only half the battle. Once you have an idea of which company might work for you, consider the following ways to save money:
- Take advantage of discounts. You’ll need to check with the company, but insurance providers usually offer discounts for safety and security features, new homes, roof replacements, bundling, and remaining claims-free.
- Pick your specialty coverage carefully. There are many additional coverage options, such as flood, earthquake, and identity theft. However, these can make your bill much higher. They’re worth the cost if you need them, but you should only buy what’s recommended for your area.
- Raise your deductible. If you have a higher deductible, your monthly insurance will be lower. There is a risk that comes with increasing your deductible, though. You’ll have to pay more before your insurance kicks in if you need to make a claim.
- Increase your home’s security. Adding smoke alarms, security screens, and active burglar monitors can save you money on your insurance. They also keep you and your family safe.
If you’re trying to figure out how to get the cheapest homeowners insurance, the best thing to do is shop around for quotes. When you start comparing companies, you’ll see a lot of variation in prices.
Find the Right Homeowners Insurance Today
When you’re wondering, “Is there cheap homeowners insurance near me?” the answer is yes — and it’s easier to find than you might think. Make sure to ask about discounts, only buy the coverage you need, and keep your home updated, and you’ll find affordable home insurance quickly.
The most crucial step to finding cheap homeowners insurance is to compare rates with as many companies as possible. Shopping around for quotes is the best way to find the most affordable rates on home insurance.